Capture
What Is Capture in Payments? Definition and How It Works
Definition
Capture in payments is the instruction sent by a merchant to collect funds on a previously authorised transaction, triggering the movement of the reserved amount through clearing and into the settlement process.
How it works
After a successful authorisation, funds are reserved on the cardholder's account but not yet collected. Capture is the merchant's instruction to proceed with collection. When the merchant sends a capture request, the acquirer includes the transaction in its next settlement batch for submission to the card network.
Immediate capture happens automatically at the point of authorisation, the merchant sends both the authorisation and the capture instruction together, or the payment system captures as soon as authorisation is approved. This is the standard flow for most e-commerce and retail transactions where fulfilment is confirmed at the point of purchase.
Delayed capture separates the authorisation from the collection. The merchant authorises at checkout, confirms the order, and captures only when fulfilment is confirmed, typically at shipment for physical goods, or after service delivery. Hotels pre-authorise at check-in and capture the final amount at check-out, which may differ from the original authorisation amount.
Partial capture allows the merchant to collect less than the originally authorised amount. If a customer orders three items and one is out of stock, the merchant can capture for the two fulfilled items and either release the remaining authorisation or let it expire. Some card schemes and acquirers require specific procedures for partial captures.
Why it matters
Capture timing affects settlement timing: transactions are settled in the batch they are captured in. Merchants with same-day settlement targets should confirm their acquirer's batch cut-off time and ensure captures are submitted before it. Captures submitted after the cut-off settle in the next batch.
Uncaptured authorisations waste authorisation holds: if a merchant authorises but never captures (for example, due to order cancellation), the authorisation hold should be explicitly voided rather than left to expire. An unreleased hold reduces the cardholder's available credit unnecessarily and may generate a chargeback if the cardholder believes they were charged.
Delayed capture introduces authorisation expiry risk: pre-authorised transactions must be captured within the scheme-mandated hold window. Merchants with long fulfilment cycles, custom orders, back-ordered goods, seasonal pre-orders, must monitor authorisation expiry and re-authorise before the window closes.
Capture amount must not exceed authorisation amount: most acquirers enforce that the captured amount cannot exceed the original authorised amount. Merchants who need to collect more than the original authorisation (for example, a hotel bill higher than the pre-authorisation) must submit an incremental authorisation before capturing the higher amount.
With PXP
PXP supports immediate and delayed capture modes, configurable per transaction. Partial captures and incremental authorisations are supported within scheme rules. PXP surfaces authorisation expiry dates in its API responses and dashboard, enabling merchants to monitor and action expiring authorisations before they lapse.
Frequently asked questions
What is the difference between capture and settlement?
Capture is the merchant's instruction to collect funds from an authorised transaction; it moves the transaction from authorisation-held status into the settlement queue. Settlement is the downstream financial process that moves the actual funds from the issuing bank through the card network to the acquirer and then to the merchant's account. Capture triggers settlement; settlement is the fund movement that results.
Can merchants capture a different amount than what was authorised?
Merchants can capture less than the authorised amount (partial capture). Most acquirers and scheme rules do not permit capturing more than the authorised amount without an incremental authorisation for the difference. Hotels and car rentals have specific scheme rules governing incremental authorisation for final bill capture that differs from the original pre-authorisation amount.
What is incremental authorisation?
An incremental authorisation is an additional authorisation request that increases the total authorised amount on an existing authorisation. It is used when the final transaction amount is not known at the time of the initial authorisation, hotels, car rentals, and restaurants with open tabs. The incremental authorisation extends the hold amount and in some schemes also resets the hold expiry window. Scheme rules governing incremental authorisation vary by card network.
What happens to funds from a captured transaction?
After capture, the transaction enters the acquirer's clearing process and is submitted to the card network in the next settlement batch. The card network routes the clearing file to the issuing bank, which releases the held funds and prepares for settlement. The acquirer receives the funds from the issuing bank (net of interchange and scheme fees) and pays the merchant according to the agreed settlement schedule.
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